CHARLTON — A license application for live entertainment at the site of an infamous "rave" party two years ago drew about a dozen neighbors to a public hearing Tuesday, where many made impassioned pleas for selectmen to deny the request.

After nearly two hours of discussion, selectmen were unable to reach a decision on the application for Ye Olde Commons LARP Camp, at 120 Northside Road, to be able to have large-scale events.

Instead, the board formed a committee comprising business owner Harald Henning, neighbors, public safety officials and selectmen to work toward a solution agreeable to all sides.

After the 2012 rave, Mr. Henning was notified that a live entertainment license would be required to hold future such events.

Town officials representing the Police and Fire departments and the Board of Health reviewed the current application and proposed 15 license restrictions that include curfews of 11 p.m. for outdoor live entertainment and 1 a.m. for indoor. Additionally, hired police details would be required under certain circumstances.

During the public hearing Tuesday, Mr. Henning said he has operated the business on 40 acres since 2004.

"The rave two years ago caused quite a bit of agitation to us as well. We do apologize for that and did apologize for that then," he said.

Mr. Henning said he understands residents' concerns and shares the same concerns. He said a similar dance party scheduled for July has been canceled.

Carl Remian of Northside Road said Mr. Henning walked the road after the rave and apologized to the neighbors. Yet Mr. Remian objected to the license as proposed, which would have allowed 1,200 people, 300 cars and 100 tents on the property for an event.

"It sounds like a mini-Woodstock to me" Mr. Remian said.

Selectmen amended the license restriction to 600 people.

Laura Hopkins, whose property abuts the business, said she awoke several times during the night of the rave to intoxicated people banging on her door to use her restroom and to about 10 people in her gated swimming pool. She also found two people sleeping in her Jeep.

Selectman Rick C. Swensen, chairman of the board, said he was conflicted on the issue.

"I'm really trying to keep the rave as a separate incident. That was an anomaly; we learned a lesson there," he said.

Regarding land use zoning, Selectman Kathleen W. Walker said, "There is no way we can say he cannot have those events; it's not our right."

Selectman David M. Singer said the one-year license sets rules and if violated, the license would be revoked and not renewed. He noted the license would require Mr. Henning to work with the police and fire chiefs on future events.

Police Chief James A. Pervier said 700 to 800 people attended the rave two years ago.

Four people were taken to the hospital for treatment related to alleged drug abuse. Although charges were brought against people for the distribution of illegal substances, Chief Pervier said no one was convicted.

"Yes, he did have a bad situation two years ago, but I don't think we should paint him with that," the chief said. "He doesn't want to have those problems but he does want to run his business."

LARP is live action role-playing, in which participants physically act out their character's action in a plot.